Giving a debt collector access to a checking account

[wdwood71]

What is the name of your state?GA
I am dealing with a debt collection company and am trying to work out payment arrangements. They are telling me that they want to auto draft the funds from my checking account every month. I obviously don't want to give access to my checking account to anyone, however, they are telling me that if I just send them a check every month, there is nothing to stop the account from "rolling forward" or going to court for a judgement.
According to them, only if I let them withdraw the funds, will they prevent that from happening. They say that if they accept funds mailed in or whatever, and then they have to go to court they will be behind in the process somehow.
It all sounds fishy to me. I am supposed to get something in writing from them which I have not received yet, telling me how much they will be withdrawing every month etc...

Should I allow them access to my bank account? What will stop them from continuing to withdraw funds even after I am able to settle for the final amount, or pay them off?

 

[DebHgn]

They can do a check over the phone once a month, just as easy as they can draw it from your account. Sounds like a scare tatic to me.

 

[ihatearizona]

Never give a debt collector access to your bank account.

Ask for debt validation right away to make sure the CA is actually the owner of the debt or legally able to collect the debt. They should also provide you with a statement of the debt and a copy of the original agreement.

Do all of this in writing. Stay off the phone!!!

 

[joeyb5980]

I don't think I would do it...

I had the same situation, except they wanted to go ahead and set up check-by-phone payments for the next 3 months, instead of me sending them payment. I was advised by people on this board to definitely not give them my checking info- not even mail a check. So I kept telling them I wasn't comfortable giving them my account info, and refused to set up payment by phone and surprise, surprise- by the end of the month they were perfectly pacified with a moneygram. Cost me like $5 to send it, but that is worth the security of them not knowing your account info. Just my two cents- hope this helps

 

[wdwood71]

My Main Concern

My main concern here is that if I don't do it their way, that they will go ahead and press for a judgement against me at some point even if I am making payments.
They are telling me that they will give me an assurance in writing that they won't do this if I give them access to my bank account. From their point of view, I can understand they want their money and are worried I won't pay.
After all, I am in collections which indicates that I might not be reliable.
However, I don't know if they have a right to guarantee they won't pursue a judgement if I pay one way, but they might if I pay them in another way.

 

[teflon_jones]

Regardless of whatever a letter they send you says, do you really want to deal with any problems they might cause by having access to your account? Their words won't be worth the paper they're printed on at that point. So do yourself a favor and send them money orders. They're not going to take you to court if you send them payment. So once you validate the debt, and that they have the authority to collect on it, send them a money order.

 

[LdiJ]

Regardless of whatever a letter they send you says, do you really want to deal with any problems they might cause by having access to your account? Their words won't be worth the paper they're printed on at that point. So do yourself a favor and send them money orders. They're not going to take you to court if you send them payment. So once you validate the debt, and that they have the authority to collect on it, send them a money order.

Actually there is one other option. That option would be to open a second checking account at another bank and deposit just enough money in that account each month to cover the service charges and the payment to them.
Its a bit of a hassle but its an option.

 

[ihatearizona]

....and if the CA decides to overdraw the account the OP will be responsible for the NSF fees. Not a good idea.